Frozen Homebuyer Sentiment... Seoul Hits Lowest in 2 Years and 9 Months

Korea Research Institute of Land January Sales Sentiment Index... Nationwide 105.8 · Seoul 105.3
Nationwide Housing Jeonse Market Consumer Sentiment Index Also Declines for 4 Consecutive Months

As perceptions of peak housing prices spread and interest rate hikes and loan regulations overlap, nationwide housing sales sentiment has contracted for five consecutive months. In Seoul, it recorded the lowest level in 2 years and 9 months.

According to the results of the "January Real Estate Market Consumer Sentiment Survey" released on the 15th by the Real Estate Market Research Center of the Korea Research Institute for Human Settlements, the nationwide housing sales market consumer sentiment index last month was 105.8, down 3.6 points from 109.4 in December last year. This marks a decline for five consecutive months since September last year (August 141.4 → September 139.3).

Seoul also dropped 2.8 points to 105.3 last month from 108.1 in December last year, declining for five consecutive months and remaining in a stable phase for two consecutive months. This is the lowest figure in 2 years and 9 months since April 2019 (97.9). The Korea Research Institute for Human Settlements classifies the real estate market situation into three phases using the consumer sentiment index: rising (115 or above), stable (95 to less than 115), and declining (below 95).

Following Seoul, Gyeonggi (109.1 → 105.6) and Incheon (109.6 → 104.0) also fell compared to December last year, bringing the entire metropolitan area down from 108.8 to 105.3.

The provinces also declined from 110.3 to 106.2 during the same period, showing a downward trend for four consecutive months. In particular, Daegu (95.0 → 92.2) shifted from a stable phase to a declining phase, and Sejong remained in the declining phase for three consecutive months at 74.5. Five regions?Gwangju (120.5 → 113.5), Chungnam (124.0 → 111.8), Jeonbuk (125.3 → 111.9), Gyeongnam (120.0 → 114.1), and Jeju (120.8 → 111.9)?shifted from a rising phase to a stable phase.

The jeonse market, which surged sharply last year, is also showing signs of stabilization. The nationwide jeonse market consumer sentiment index was 98.9, declining for four consecutive months since September last year (119.3 → 111.7 → 105.8 → 100.0 → 98.9).

Seoul's index soared to 122.9 in August last year but began to decline from September (121.4), ending the previous rising phase and returning to a stable phase in October (111.2), then continuing to decline with 104.9 in November, 96.2 in December, and 96.2 last month. Incheon fell from 100.3 in December last year to 99.9 in January this year, and Gyeonggi showed a similar figure last month at 97.8 compared to 97.7 in December last year. Daegu declined for two consecutive months since December last year, and Sejong for three consecutive months since November last year.

This content was produced with the assistance of AI translation services.